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The Fit between product market strategy and business model: implications for firm performance

We examine the fit between a firm's product market strategy and its business model. We develop a formal model in order to analyze the contingent effects of product market strategy and business model choices on firm performance. We investigate a unique, manually collected dataset, and find that novelty-centered business models - coupled with product market strategies that emphasize differentiation, cost leadership, or early market entry - can enhance firm performance. Our data suggest that business model and product market strategy are complements, not substitutes..Printed journal

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